Central Bank of the UAE said it is reviewing available options regarding the bank’s status following a statement issued by US authorities and has ordered a special and urgent examination of its UAE branches
Abu Dhabi: The Central Bank of the UAE (CBUAE) reviewed the statement issued yesterday by the US authorities regarding the Proposal of Special Measure Regarding Banque Misr UAE branches, as a Financial Institution Operating Outside of the United States of Primary Money Laundering Concern.
The Central Bank emphasised the following:
Branches of Banque Misr operating in the UAE are subject to the laws and regulations in force in the UAE.
The Central Bank expects banks licensed in the UAE not to expose the UAE’s financial system to reputational risks, to respect the laws and regulations of the countries whose financial institutions are used in conducting transactions, and not to misuse the advanced financial infrastructure of the UAE.
The Central Bank periodically examines the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) procedures at banks operating in the UAE, verifies the effectiveness of sanctions screening and other systems, and requires banks to enhance these procedures and systems in accordance with the requirements of applicable laws and regulations.
Regarding Banque Misr’s UAE branches, the Central Bank has decided to conduct a special and urgent examination, including a forensic and in-depth lookback covering the period referred to in the statement issued by the US authorities, with a focus on the banking transactions of the companies mentioned in the statement.
The Central Bank is currently studying the available options regarding the status of the bank in the event it is decided to impose the special measure after the completion of procedures in accordance with US laws. The appropriate decision in this regard will be taken in due course, taking into consideration the bank’s obligations towards its customers in the UAE.
Source: Emirates 24|7